The financial world is in the midst of the “Great Wealth Transfer.” Over the next two decades, an estimated $84–124 trillion will pass from Baby Boomers to Gen X, Millennials, and Gen Z (Capgemini, 2025). This shift presents opportunities and risks, and for families creating or preserving multi-generational wealth, the challenge is not only financial. In order to preserve their legacy, they need to reconcile values, expectations, and perspectives across very different generations.
Generational Worldviews
Baby Boomers and Traditionalists
Each generation approaches money through the lens of the world it inherited. For Baby Boomers and Traditionalists, wealth has long been about stability, preservation, and legacy. Work was seen as a duty, a way to provide for family and community. Loyalty to employers was highly valued. Security is central to their worldview, and large-scale changes are often approached with caution.
Gen X: The “Forgotten Generation”
According to a Kiplinger article, Gen Xers have weathered multiple economic shocks (the dot-com bust, the 2008 recession, and COVID-19), which has made them notably resilient, self-reliant, and entrepreneurial. Many hold significant home equity and can benefit from wealth transfers.
Gen X entered the workforce just as guaranteed pensions were giving way to employee-funded 401(k)s. Many feel underprepared for retirement and worry about financial security in later life. Instead of early retirement, Gen X often imagines a longer, more active career that balances family, health, and personal engagement. At the same time, they were also the ones to plant the seeds of a very different philosophy: the FIRE movement (Financial Independence, Retire Early). The roots of FIRE trace back to Vicki Robin and Joe Dominguez’s bestselling book Your Money or Your Life (1992), Jacob Lund Fisker’s Early Retirement Extreme (2010), and Peter Adeney’s influential blog Mr. Money Mustache (2011). These Gen X voices championed frugality, intentional living, and the pursuit of independence, laying the groundwork for what later became a rallying cry among younger generations.
Gen X investors often take a pragmatic and balanced approach. They straddle the line between tradition and innovation. They tend to lean on familiar assets like real estate and equities, but also show growing interest in alternatives, direct investments, and entrepreneurial ventures. As digital adopters rather than natives, they value fintech and online platforms but still want the trust and reassurance of human advice. While not as vocal about ESG as Millennials, many Gen Xers see sustainable investing as a matter of long-term stability rather than activism. Positioned between two larger cohorts, they are often overlooked, yet their blend of caution and innovation makes them the embodied bridge between generations.
Millennials: Purpose and Impact
Millennials, by contrast, are driven strongly by purpose and impact. They want their money and careers to align with personal values, whether those values are social responsibility, balance, or continuous learning. Digital assets, private equity, and new forms of investment appeal to them, not only for potential returns but also for the sense of innovation and relevance they represent. They have embraced ESG investing more enthusiastically than any generation before them and prefer to be directly involved in financial decisions. According to a recent Morgan Stanley Survey, 65% of Millennials and 68% of Gen Z have over 20% of their portfolios already invested in companies or funds with positive social or environmental impact. In contrast, only 37% of Gen Xers and 22% of Baby Boomers have done the same. Moreover, 80% of Millennials and Gen Z plan to increase their allocations to sustainable investments over the next year, compared to just 56% of Gen X and 31% of Boomers. The same survey also found that a striking 92% of Millennials would choose a financial advisor or investment platform based on its sustainable investing offerings. For many Millennials, success is not defined by titles or earnings alone, but by whether their work contributes to something meaningful.
Millennials and Gen Z are the drivers of innovation. A 2023 Fortune report reveals that 88% of Gen Z and 89% of Millennials are eager to embrace new technologies. By comparison, 78% of Gen X and 69% of Baby Boomers expressed similar openness.
Gen Z: Soft Saving vs FIRE
Gen Z presents perhaps the most complex picture of all. Having grown up amid financial crises, rising living costs, and uncertain job markets, they carry both caution and creativity into their approach to money. A growing number have embraced what is called “soft saving”, an approach that balances saving with spending on experiences and well-being in the present. Unlike the older model of deferring gratification for decades in the hope of a distant retirement, soft saving prioritises a good quality of life now, throughout one’s career. An Intuit survey found that 73% of Gen Z would rather have a better quality of life now than extra money saved, and 48% feel global challenges make them hesitant to set long-term goals. Similarly, a Scripps News‑reported survey (TIAA) found that 84% of Gen Z respondents are saving regularly, but most aren’t setting aside money for retirement. Instead, they focus on immediate goals like travel, transportation, and housing.
At the same time, another segment of Gen Z is enthusiastically embracing the FIRE movement, aiming to retire early through disciplined saving and investing. A Harris Poll for dub, conducted in 2025, found that a striking 94% of Gen Z (ages 18–28) aim to achieve financial independence by age 55, with many ideally targeting as early as age 32. A Santander Bank survey in 2025 showed that 58% of Gen Zers had increased their savings since the beginning of the year—more than Gen X (47%) or Boomers (39%)—and 69% made lifestyle trade-offs to save more.
FIRE and soft saving cannot realistically coexist for the same individual: one requires extreme frugality, the other a willingness to spend on the present. Still, together they reflect the spectrum of Gen Z’s financial outlooks.
A Gallup study found that 68% of Gen Z and younger millennials report feeling stress “a lot of the time” at work, significantly higher than older generations. Many feel exhausted or detached, with financial insecurity compounding the problem. The 2025 Deloitte Global Gen Z & Millennial Survey links financial insecurity to lower well-being, finding that nearly half of Gen Z (48%) and millennials (46%) say they don’t feel financially secure.
For Gen Z and Millennials especially, career success is not measured by senior titles, but by flexibility, balance, and ongoing development. This same Deloitte survey reports that only 6% of Gen Z and millennials say their primary career goal is to reach a leadership position, with 89% of Gen Z and 92% of millennials considering a sense of purpose vital for job satisfaction and well-being.
Despite these differences, research points to important areas of common ground. Across the board, people value financial security, family well-being, and sustainable prosperity. The divergence is less about what is important and more about how success is defined. For older generations, it is legacy and stability. For younger ones, it is balance, adaptability, and purpose.
Preserving Wealth Across Generations
Managing wealth across such varied perspectives requires structure and flexibility in equal measure. Families who succeed tend to combine governance, communication, and shared purpose with intentional financial strategies.
- Family Governance and Communication
Clear governance prevents fragmentation. Open conversations help align values and manage expectations. Tools such as the Family Council Canvas can support this process by offering a structured way to define vision and purpose together. - Intentional Wealth Management
Wealth strategies should reflect both financial goals and family values, balancing accumulation with ethical considerations and thoughtful giving. Sophisticated tax planning remains essential, particularly as global debates about wealth taxation grow louder, with increasing momentum behind levies on the ultra-wealthy. - Succession Planning that Balances Tradition and Innovation
Succession planning must prepare the next generation to manage assets effectively. A lack of financial literacy or advisor connections can quickly erode wealth. Mentorship, education, and meaningful involvement are critical to ensure smooth transitions and to align risk profiles with family expectations.
Innovation and the Next Generation
Innovation is essential to keeping family enterprises relevant. Families that succeed encourage adaptability and fresh ideas while rooting new ventures in their long-standing values. Younger generations often bring digital expertise and creative energy, but to fully engage them, they need real responsibility in decision-making. When they feel genuine ownership, they are more committed to carrying the family’s legacy forward. At the same time, families must balance the emotional weight of legacy with sound financial strategy. Emotional commitment can be a strength, but unchecked, it can cloud judgment.
The Changing Role of Advisors
Advisors are central to managing these transitions. Their role is shifting from purely technical planning to mentorship and partnership – and taking the needs, expectations and vulnerabilities of each generation into consideration.
- From Technical to Relational
Younger generations want advisors who act as mentors and accountability partners, not just experts with spreadsheets. - Understanding Family Values
Advisors must grasp the family’s purpose and priorities, not just the financial portfolio. - Facilitating Dialogue
Good advisors bridge communication gaps and help align strategies across generations. - Adapting to New Expectations
Digital fluency, ethical alignment, and flexible communication are now baseline requirements. Those who adapt will build long-term trust, while those who don’t risk losing clients as wealth changes hands.
Building a Lasting Legacy
The Great Wealth Transfer is undoubtedly a powerful economic shift, but also a cultural and generational reckoning. Families that thrive will be those who communicate openly, embrace innovation while holding on to their legacy, and prepare successors with skills and purpose. The ultimate goal is clear: a unified, prosperous, and value-driven family business.
References:
Capgemini Research Institute for Financial Services. (2025) Wealth Management Top Trends 2025. Available at: https://www.capgemini.com/insights/research-library/wealth-management-top-trends-2024/ (Accessed: 29 August 2025).
Deloitte. (2025) The Deloitte Global 2025 Gen Z and Millennial Survey. Deloitte Insights. Available at: https://www.deloitte.com/global/en/issues/work/genz-millennial-survey.html (Accessed: 29 August 2025).
Fortune. (2023) America’s Generational Divide in Applying Technology: Gen Zers and Boomers on Tech Optimism and Nostalgia. Fortune Magazine, 24 August. Available at: https://fortune.com/2023/08/24/america-generational-divide-apply-technology-gen-zers-and-boomers-tech-optimism-nostalgia-ai-johnson-routledge/ (Accessed: 29 August 2025).
Gallup. (2023) Generation Disconnected: Data on Gen Z in the Workplace. Gallup Workplace Report. Available at: https://www.gallup.com/workplace/404693/generation-disconnected-data-gen-workplace.aspx (Accessed: 29 August 2025).
Harris Poll for dub. (2025) Gen Z and Financial Independence Goals. Business Insider. Available at: https://www.businessinsider.com/gen-z-financial-independence-goals-side-hustles-entrepreneurship-freelance-work-2025-8 (Accessed: 29 August 2025).
Intuit. (2023) Gen Z and the Rise of Soft Saving. Investopedia. Available at: https://www.investopedia.com/soft-saving-gen-z-11721075 (Accessed: 29 August 2025).
Kiplinger. (2024) Gen X Challenges Lie Ahead as Retirement Nears. Kiplinger Retirement Report. Available at: https://www.kiplinger.com/retirement/retirement-planning/gen-x-challenges-lie-ahead-as-retirement-nears (Accessed: 29 August 2025).
Morgan Stanley. (2025) Sustainable Signals: Individual Investor Interest in Sustainable Investing. Morgan Stanley Institute for Sustainable Investing. Available at: https://www.morganstanley.com/press-releases/morgan-stanley-sustainable-signals-report (Accessed: 29 August 2025).
Natixis Investment Managers. (2024) Generation X Report: Retirement Realities and Outlook. Available at: https://www.im.natixis.com/content/dam/natixis/website/insights/investor-sentiment/2024/gen-x-report/generation-x-report.pdf (Accessed: 29 August 2025).
Santander Bank. (2025) Gen Z Savings Behaviour Report. Vogue Business. Available at: https://www.voguebusiness.com/story/fashion/how-should-brands-navigate-gen-z-economic-nihilism (Accessed: 29 August 2025).
Schroders. (2024) U.S. Retirement Survey: Generation X Outlook. Schroders plc. Available at: https://www.investopedia.com/generation-x-all-eyes-on-retirement-5224396 (Accessed: 29 August 2025).
Scripps News / TIAA. (2025) Gen Z’s Saving Habits: Financial Priorities and Insights. Scripps News. Available at: https://www.scrippsnews.com/life/money/generation-zs-saving-habits-a-look-at-their-financial-priorities-and-insights (Accessed: 29 August 2025).
